As we look ahead to 2025, one of the most frequently asked questions among Ripple enthusiasts is whether XRP will outperform Bitcoin. The current market cycle is unlike previous ones, with Bitcoin continuing to dominate and altcoins struggling to catch up. In fact, Bitcoin’s dominance has increased from around 53% to 62% over the past year. This trend points to a notable absence of the typical “altcoin season,” where altcoins outpace Bitcoin in performance. However, this doesn’t rule out the possibility that XRP could outperform Bitcoin in the coming year. Let’s examine three crucial factors that could influence this.
1. Ripple’s Expansion in Cross-Border Payments
Ripple’s progress in the cross-border payments sector could play a pivotal role in boosting XRP’s price in 2025. Ripple has been quietly expanding its presence in this area, with one notable move being a rumored offer to acquire Circle, the issuer of the USDC stablecoin, for $5 billion. Although this offer was reportedly declined, it signals Ripple’s push to strengthen its foothold in the stablecoin industry—a space widely considered one of the most reliable use cases for crypto.
Ripple also launched its own stablecoin, RLUSD, earlier this year. While it’s not yet a leader in the space, RLUSD boasts a circulating supply of around $320 million and shows significant trading volume, further solidifying Ripple’s growing influence.
2. XRP ETFs: A Potential Catalyst for Price Growth
The approval of spot Bitcoin ETFs in early 2024 significantly contributed to Bitcoin’s price surge by attracting institutional and retail investors. Many analysts believe the same could happen for XRP if the US Securities and Exchange Commission (SEC) approves XRP spot ETFs.
Nate Geraci, president of the ETF Store, anticipates that approval is just a matter of time and expects major firms like BlackRock and Fidelity to participate. While the approval of an ETF might trigger short-term price gains, sustained growth will depend on a variety of factors beyond just an ETF listing. If Ripple can leverage its position in the market, it could open doors to new partnerships and opportunities that further benefit XRP’s long-term prospects.
3. Macroeconomic Environment
The broader macroeconomic environment plays a significant role in shaping the price of XRP and other cryptocurrencies. A strong US economy and favorable regulations for crypto businesses could be beneficial for US-based companies like Ripple. This shift in sentiment, particularly towards entities like Ripple, could result in positive outcomes for the company and XRP in 2025.
With the US government showing increasing support for the cryptocurrency sector, Ripple stands to gain from a favorable regulatory environment, which could further boost XRP’s performance compared to Bitcoin.
